Management and Organizational Studies 2285 Lecture Notes - Lecture 1: Invisible Hand, Comparative Advantage, Product Engineering

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2285
• Professor: Trevor Hunter

Document Summary

Corporations are separate legal entities, o(cid:271)ligated to thei(cid:396) : owners (shareholders, customers, employees, community. Legally required to make as much money as physically and legally possible. Profit is earned in two ways: lowering costs. Innovation: new products or features that create more sales or higher sales prices. Efficiency drivers make more money by lowering costs. Market expansion drivers: make more money by selling more stuff to more people. What works in one country may not work in another it goes beyond products e(cid:454). What facilitates globalization: the decline of barriers of movement of goods, services, investments, skills, etc, technology: computers, transportation, communications, etc. Four main aspects of the global business environment which diffe(cid:396) a(cid:374)d (cid:272)(cid:396)ease u(cid:374)(cid:272)e(cid:396)tai(cid:374)t(cid:455) a(cid:374)d (cid:272)o(cid:373)ple(cid:454)it(cid:455) . Businesses operate in complex environment, often full of uncertainty and turmoil. Uncertainty makes it difficult to operate efficiently: social systems. Different cultures have different perspectives toward many different issues including, religion, human rights,